Grubnich v. Renner

• Citation: 746 N.E.2d 111
• Decision Date: 10 April 2001
• Docket Number: No. 45A05-0011-CV-500.,45A05-0011-CV-500.
• Parties: Pete GRUBNICH, D.D.S., and Unknown Dental Employees of Pete Grubnich, D.D.S., Appellants-Defendants, v. Betty L. RENNER and Richard W. Renner, Sr., Appellees-Plaintiffs.
• Court: Court of Appeals of Indiana

746 N.E.2d 111

Pete GRUBNICH, D.D.S., and Unknown Dental Employees of Pete Grubnich, D.D.S., Appellants-Defendants, v. Betty L. RENNER and Richard W. Renner, Sr., Appellees-Plaintiffs.

No. 45A05-0011-CV-500.

Court of Appeals of Indiana.

April 10, 2001.

David C. Jensen, Alyssa Stamatakos, Eichhorn & Eichhorn, Hammond, IN, Attorneys for Appellants.

Priscilla A. Herochik, Merrillville, IN, Attorney for Appellees.

OPINION

BROOK, Judge

Case Summary

Appellant-defendant Pete Grubnich, D.D.S. ("Grubnich") appeals the award of post-judgment interest to appellees-plaintiffs Betty L. Renner and Richard W. Renner, Sr. ("the Renners"). The Renners cross-appeal the denial of sanctions and attorney fees. We affirm.

Issues

Grubnich presents three issues for our review, which we restate as follows:

I. whether the trial court lacked jurisdiction to award post-judgment interest three years after final judgment on the jury verdict;

II. whether the trial court improperly relied on a change in case law as the basis for awarding post-judgment interest; and

III. whether the Renners were entitled to interest on the post-judgment interest.

The Renners raise one issue in their cross-appeal, which we restate as whether the trial court erred in denying sanctions, including attorney fees.

Facts and Procedural History

On February 12, 1997, a jury returned a verdict in favor of the Renners awarding them $150,000 in damages on their dental malpractice claim against Grubnich. Under the Medical Malpractice Act, Grubnich's liability was limited to $100,000, and the Patient's Compensation Fund ("the Fund") was liable for the remaining $50,000. IND.CODE § 27-12-14-3 (current version at IND.CODE § 34-18-14-3 (1998)). The court entered judgment on the verdict, and Grubnich appealed. On September 28, 1998, a panel of this court affirmed the judgment, and the supreme court denied transfer on March 2, 1999. On March 8, 1999, Grubnich filed a notice of payment of judgment and paid $100,000 to the clerk of the court. On March 12, 1999, the Renners filed a partial satisfaction of judgment for the amount of $100,000 and reserved their right to the remainder of the judgment from the Fund¹ as well as their right to post-judgment interest and costs from either Grubnich or the Fund or both. The Renners also requested a bond for the remaining costs and interest. On April 19, 1999, the trial court denied the Renners' request for bond based on this court's opinion in Poehlman v. Feferman, 693 N.E.2d 1355 (Ind.Ct.App.1998) ("Poehlman I"), aff'd in part, vacated in part, 717 N.E.2d 578 (Ind.1999) ("Poehlman II"), which had been vacated by the supreme court's grant of transfer on October 13, 1998.

In December 1999, after the supreme court issued its decision in Poehlman II providing that each defendant was responsible for post-judgment interest on its judgment for damages, the Renners requested payment of post-judgment interest from Grubnich and the Fund on their respective liabilities. The Fund paid its portion of the interest on January 21, 2000; however, Grubnich refused to pay. On March 20, 2000, the Renners filed a motion for costs and post-judgment interest. They also sought attorney fees pursuant to Indiana Code Section 34-52-1-1, claiming that Grubnich's defense was frivolous, groundless, or unreasonable. Grubnich argued that Poehlman II did not apply to this case because it was decided after final judgment was entered in March 1999. Thus, Grubnich argued that Poehlman II was a change in the law that could not be applied retroactively. On August 22, 2000, the trial court granted the Renners' motion for post-judgment interest and denied their request for attorney fees.

Discussion and Decision

I. Jurisdiction

First, Grubnich contends that because final judgment had been entered, the trial court lacked subject matter jurisdiction² and could not award post-judgment interest approximately three years after the judgment. Specifically, Grubnich argues that the trial court did not enter an award of post-judgment interest at the time it entered judgment. The Renners counter that the right to post-judgment interest is provided by statute and that it is therefore unnecessary for the trial court to order specifically an award of post-judgment interest at the time it enters final judgment.

Indiana Code Section 24-4.6-1-101 states:

Except as otherwise provided by statute, interest on judgments for money whenever rendered shall be from the date of the return of the verdict or finding of the court until satisfaction at:

...

(2) an annual rate of eight percent (8%) if there was no contract by the parties.

The right to post-judgment interest arises as a matter of statutory law. IND.CODE § 24-4.6-1-101; see Caldwell v. Black, 727 N.E.2d 1097, 1100 (Ind.Ct.App.2000)

(noting that "post-judgment interest is statutorily mandated for money judgments"). Contrary to Grubnich's contentions, the trial court is not required to include an order for post-judgment interest in its judgment. See Caldwell, 727 N.E.2d at 1100 (stating that "the Interest on Money Judgments Statute provides post-judgment interest, at the current statutory rate of eight percent per year, following a judicial determination of arrearage without the necessity of a specific request for interest" (emphasis added)); see also Indiana Revenue Bd. v. State ex rel. Bd. of Comm'rs of Hendricks County, 270 Ind. 365, 370, 385 N.E.2d 1131, 1134 (1979) ("Since a permissible suit was maintained against a board of the state and since a money judgment was authorized by law to be paid, it is axiomatic that interest attached pursuant to the language within Ind.Code § [XX-XX-X-X]."); Poehlman, 717 N.E.2d at 583 ("This obligation to pay post-judgment interest is part and parcel of the obligation to pay a money judgment, and those finding themselves on the wrong side of the law after trial must decide whether to limit their liability and pay up or risk incurring further liability in the form of accruing interest if not successful on appeal."); cf. Miller v. Artistic Cleaners, 153 F.3d 781, 785 (7th Cir.1998) ("[R]egardless of whether there is any reference to postjudgment interest in the pleadings, a court's order, or the entry of a money judgment, a prevailing plaintiff in federal court is automatically entitled to postjudgment interest."); Ward v. Tipton County Sheriff Dep't, 937 F.Supp. 791, 800 (S.D.Ind.1996) ("Postjudgment interest is statutorily required, and the court need not make a separate award for plaintiff to collect it."); Felton v. Board of Comm'rs of the County of Greene, 853 F.Supp. 1099, 1100 (S.D.Ind. 1994) (noting that statute "`entitles the prevailing plaintiff in a federal suit ... to postjudgment interest at a rate fixed in the statute, whether or not there is an award of interest in the judgment, ... or even a request for interest in the complaint' " (quoting Bell, Boyd & Lloyd v. Tapy, 896 F.2d 1101, 1104 (7th Cir.1990))). Indeed, the language of the statute does not require a specific award of post-judgment interest.

Hence, the Renners' right to post-judgment interest arose on February 12, 1997, the date of the jury verdict. See IND.CODE § 24-4.6-1-101 (providing that "interest on judgments for money whenever rendered shall be from the date of the return of the verdict" (emphasis added)). Their motion for costs and post-judgment interest in March 2000 was simply a request that the trial court enforce the judgment.³ "Courts have inherent power to entertain an action to determine whether a judgment has been carried out and satisfied." United Farm Bureau Mut. Ins. Co. v. Ira, 577 N.E.2d 588, 592 (Ind.Ct.App. 1991), trans. denied. Thus, the August 2000 order requiring Grubnich to pay post-judgment interest was within the court's jurisdiction. See Bitner v. Hull, 695 N.E.2d 181, 183 (Ind.Ct.App.1998)

(rejecting appellant's argument that the trial court lacked jurisdiction to alter its decree of dissolution because ninety days had passed since the judgment was entered and concluding that trial courts have inherent power to issue orders to enforce judgments). Having determined that the trial court had jurisdiction over the Renners' claim, we address the applicable law in determining the party responsible for post-judgment interest.

II. Post-Judgment Interest

Second, Grubnich contends that the trial court erred in awarding post-judgment interest to the Renners. Specifically, Grubnich argues that the trial court's reliance on Poehlman II was improper because Poehlman II changed the law and was decided after the Renners' claim against Grubnich had been finally determined and that the retroactive application of Poehlman II was therefore error.

The trial court entered judgment in favor of the Renners for $150,000 on February 12, 1997. On April 27, 1998, in Poehlman I, a panel of this court held that although medical malpractice plaintiffs may recover post-judgment interest, a defendant doctor's liability is limited to $100,000 under the Medical Malpractice Act. Poehlman I, 693 N.E.2d at 1359. Thus, the Poehlman I court concluded that recovery of damages and post-judgment interest exceeding $100,000 could only be obtained from the Fund. Id. at 1360. The supreme court granted transfer in Poehlman I on October 13, 1998, thereby vacating the opinion.

Grubnich appealed the trial court's judgment, which was affirmed by this court. Our supreme court denied transfer on March 2, 1999, thereby ending Grubnich's appeal. Grubnich paid $100,000 on March 8, 1999. On March 9, 1999, the trial court entered an order acknowledging receipt of the payment as partial satisfaction of the judgment. The Renners specifically reserved their right to obtain the remainder of the judgment from the Fund in the amount of $50,000, as well as their right to post-judgment interest and costs from either Grubnich or the Fund or both. Based on the holding of Poehlman I, Grubnich argued that he had satisfied his portion of...